Report Says More Nuclear Plants in Financial Trouble

A report from Bloomberg New Energy Finance (BNEF) says the financial struggles of U.S. nuclear power plants continue to increase, and it is likely more plants will be faced with early retirement. It’s another acknowledgement of the tough operating environment for nuclear facilities as gas-fired and renewable energy sources continue to grab more power generation market share in an era of lower electricity costs and slowing demand for electricity.

Nicholas Steckler, an analyst with BNEF, on May 15 said 24 of the more than 60 U.S. operating nuclear power plants are either set to close or will not be able to cover their operating costs through 2021. Steckler wrote in his report that those sites have total generation capacity of 32.5 MW, which is nearly a third of the nation’s total nuclear nameplate generation capacity of just above 100 MW, according to the U.S. Energy Information Administration.

Steckler and co-author Chris Gadomski in their report released Tuesday said about $1.3 billion annually is needed to shore up the finances of the struggling plants. The group earlier this year in a similar analysis said about half of all U.S. coal-fired generation capacity also is at financial risk.